In 2017, a year which was filled with initial uncertainties, salesforce.com, inc. (NYSE:CRM) was a revelation. The vaunted cloud-computing company racked up 47.5% shareholder profits. More impressively, in an uglier year in 2018, CRM stock continues to deliver the goods, gaining nearly 14%. Naturally, one wonders how long this momentum can last.
If you’ve tuned into the news surrounding Salesforce co-founders Marc Benioff and Parker Harris, you should closely watch CRM stock.
Never one to shy away from innovations and pushing the envelope, Benioff in particular readily admitted that he was considering implementing the blockchain technology into his burgeoning organization. My only question is, what took so long?
This potential Salesforce blockchain project is a perfect complement to their cloud-computing business. The cloud has revolutionized the business world in large part because it has untethered centralized administration.
Once the technology is further mainstreamed, it may no longer be necessary for workers to congregate at physical cubicles: work products could be instantly and seamlessly shared in a secure, cloud database.
The blockchain has impacted the financial and investing world in the same manner. Rather than a central bank issuing currencies, and thereby arbitrarily controlling the supply-demand dynamic, the blockchain allows individual participants to determine a digital token’s supply through the mining process.
The investing public determine the value of these cryptocurrencies through free market activities as well.
In both cases, we saw a dramatic rethink of commonly-accepted methodologies; hence, I find the run-up in both Salesforce stock and cryptocurrencies like bitcoin well justified.
That said, CRM stock, despite its healthy returns, can still pleasantly surprise shareholders. This is because unlike so many posers, the Salesforce blockchain project could legitimately become the real deal.
Salesforce Stock Will Do Blockchain Right
To some critics, the Salesforce blockchain news is coming out at a less-than-ideal time. Against their all-time highs, cryptocurrencies are getting smoked. Moreover, major tokens like bitcoin and ethereum can’t seem to generate traction. If Salesforce stock is hinging on the blockchain, they may want to hinge out.
But in my view, this is the perfect time for both entities to partner up. One of the reasons why cryptos are performing poorly is growing pains: the industry must weed out “junk coins,” or blockchain projects that only have speculative value. Having a company like Salesforce do blockchain right is good for CRM stock, and great for cryptocurrencies.
Unfortunately, the investing public suffers from blockchain ignorance. Overstock.com Inc (NASDAQ:OSTK) CEO Patrick Byrne best characterized this ignorance when he proclaimed that the blockchain could eradicate world poverty.
Unless western powers voluntarily agree not to exploit developing countries’ people and resources, world poverty will always be a problem. The only thing the blockchain would do is to screw over the poor anonymously.
Thus, the basic reason why I’m bullish on CRM stock is that the company founders aren’t naïve. They know what a potential Salesforce blockchain service can and cannot do. At the end of the day, the blockchain is simply a database. What makes it special is that the input validation process is decentralized, and that it is an immutable platform.
Just on its security and data integrity implications, this project is a potential goldmine for Salesforce stock. Add in an army of talented developers and product marketing experts, and CRM can make the blockchain practical.
A Turning Point for CRM Stock and Cryptocurrencies?
Currently, CRM stock is trading inside a consolidation phase. On the other side of the coin, cryptocurrencies are also at a fork in the road. I don’t want to speak out of turn, but the Salesforce blockchain project could represent a turning point.
Here’s my thought process: everyone loves bitcoin for its investment profitability potential. Historically speaking, bitcoin is one of the best performing assets in human history. But in order for this digital market to continue moving forward, it requires mainstream adoption. CRM may provide the answer.
Consider for example the DigiByte blockchain project. The development team claims that their technology can process transactions far quicker than The Western Union Company (NYSE:WU) and Paypal Holdings Inc (NASDAQ:PYPL). Given the evolution of the blockchain, I have no reason to doubt this claim. As a result, I acquired some DigiByte tokens.
But if a relatively unknown entity can rival Western Union, imagine what Salesforce can do. With their immense cloud assets and networks, it wouldn’t take much for them to make a serious impact.
Yes, it’s speculation, but the groundwork is already laid out, and the concept beyond proven. All that’s remaining is for someone to standardize this explosive technology. Salesforce has all the right components to achieve this, which makes CRM stock very enticing indeed!
As of this writing, Josh Enomoto is long bitcoin, ethereum, and DigiByte.